NBCC Fixes IPO Price Band At Rs.90-106/share

State-run National Buildings Construction Corporation or NBCC has fixed a price band in the range of Rs.90 to Rs.106 for its initial share sale that aims to raise up to Rs.127 crore or $25.3 million.

The issue opens on March 22 and closes on March 27. The shares offered via IPO would be listed in bourses in the next month (April).

The Indian government plans to divest a ten percent stake in NBCC, which is a consultant for civil construction and real estate projects.

This would be the last issue by government, which is a part of divestment programme of Rs.40,000 crore for FY12. The government has raised more than Rs.14,000 crore so far via stake dilution in two public issues - Power Finance Corporation and ONGC. It has reduced its target to Rs.30,000 crore for FY13 and Rs.25,000 crore for FY14.

The auction in Oil and Natural Gas Corporation Ltd. earlier this month failed to attract enough investors, forcing state-run Life Insurance Corporation of India to pick up most of the five percent stake on offer.

IDBI Capital Market Services and Enam Securities are book running lead managers to the issue.